DBS Vickers advised investors in the small and mid-cap sector to pick recovery plays and stocks with strong ASEAN domestic consumption drivers, as well as offshore and marine stocks benefiting from high oil prices.

So far this year, the FT ST Small Cap index has risen 18 percent, while the FT ST Mid Cap has added 19 percent, outperforming a 14 percent gain in the broader Straits Times Index.

DBS favoured electronics firm Venture Corp Ltd, vegetable processor China Minzhong Food Corp Ltd and budget carrier Tiger Airways Holdings Ltd.

"With crude oil hovering over US$120 a barrel, the most obvious way to play oil is to buy oil-related equities benefitting from higher crude price and the resulting surge in offshore support activities," the brokerage said in a note.

Ezion Holdings Ltd, CH Offshore Ltd and ASL Marine Holdings Ltd are its top picks in the sector.

1050 (0250 GMT)

(Reporting by Eveline Danubrata in Singapore; eveline.danubrata.thomsonreuters.com)